What Invalidates a Check?

A check becomes invalid when it can no longer be legally cashed or deposited due to various factors related to its age, the issuer's account status, or issues with its authenticity and proper completion. Understanding these reasons helps prevent complications for both the check writer and the recipient.

Key Factors That Invalidate a Check

Several common scenarios can cause a check to lose its validity:

1. Age of the Check

One of the most frequent reasons a check becomes invalid relates to its age, often referred to as stale-dating.

• Stale-Dated Checks: Most banks consider checks presented more than six months after their issue date to be "stale-dated." While a bank might still honor a stale-dated check at its discretion if funds are available, they are generally not obligated to do so, effectively rendering the check void.
• Explicit Expiration Dates: Some checks, particularly those issued by corporations, may have a specific expiration date printed directly on the check face. These can be as short as 90 or 120 days, after which the check is automatically void and cannot be cashed or deposited.

2. Insufficient Funds (NSF)

When the check issuer's account does not have enough money to cover the check's amount, it is returned for Insufficient Funds (NSF), commonly known as a "bounced check." The check is then invalid, and both the issuer and sometimes the recipient may incur fees.

3. Stop Payment Order

The person who wrote the check (the drawer) can issue a stop payment order to their bank. This instruction prevents the bank from honoring the check if it is presented. Once a stop payment order is active, the check becomes invalid.

4. Errors or Incomplete Information

A check requires specific, accurate information to be valid. Errors or omissions can lead to invalidation:

• Missing or Mismatched Signature: The check must be signed by the account holder. If the signature is missing, or if it doesn't match the bank's records, the check will typically be invalidated.
• Discrepancy in Amount: If the numerical amount written on the check differs from the written-out word amount, banks typically consider the word amount as valid, but the discrepancy can cause delays or outright invalidation if the bank suspects fraud or error.
• Incomplete Information: A missing date, payee name, or amount can render a check invalid.
• Illegible Information: If critical details like the payee's name or the amount are unreadable, the check may be rejected.

5. Fraudulent Activity

Checks involved in fraudulent activities are immediately invalidated.

• Forged Checks: If the signature or any other part of the check is proven to be forged, it is invalid.
• Counterfeit Checks: Checks that are entirely fake or not issued by a legitimate bank or account are invalid.
• Altered Checks: Any unauthorized changes to the payee, amount, or other details on a check will invalidate it.

6. Account Status Issues

The status of the issuer's bank account can also invalidate a check:

• Closed Account: If the account on which the check is drawn has been closed, the check becomes invalid.
• Frozen Account: If the account is frozen due to legal reasons, disputes, or suspicious activity, any checks drawn on it will not be honored.

7. Physical Damage

A check that is severely damaged, torn, or defaced to the point where critical information (like the routing number, account number, or amount) is unreadable may be rejected by the bank.

Summary of Check Invalidation Reasons